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Macro Roundup (Aug 4)
Aug 4,2020 08:54CST
data analysis
Shanghai base metals were mostly higher in overnight trading. US stocks rose across the board.

SHANGHAI, Aug 4 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

Shanghai base metals were mostly higher in overnight trading. US stocks rose across the board.

On the LME, nonferrous metals prices were mixed on Monday. Copper increased 1.6%, aluminium surged 2.02%, lead advanced 0.27% and nickel added 1.06%, while zinc shed 0.13% and tin shriveled 0.14%.

Their counterparts on the SHFE, except for zinc, cruised higher in overnight trading. Copper jumped 1.33%, aluminium surged 1.51%, nickel increased 1.52%, tin added 1.01% and lead edged up 0.19%. Zinc shed 0.45%.

The ferrous complex on the SHFE jumped across the board in overnight trading. Iron ore surged 3.48%, rebar strengthened 1% and hot-rolled coil advanced 0.8%.

The US dollar was up against a basket of currencies on Monday as investors unwound some recent short positions following the currency’s weakest monthly performance in a decade. The US dollar index, which measures the greenback against a basket of its peers, posted a more than 4% decline for July, its biggest monthly drop since September 2010. The dollar index was last up 0.5% at 93.84.

On Wall Street, stocks closed higher on Monday. The Dow Jones Industrial Average ended 0.89% higher at 26,664.4 points, the S & P index rose 0.72% to close at 3,294.61 points, and the Nasdaq index finished the day 1.47% higher at 10,902.8 points. Investors continue to monitor negotiations over a new stimulus package as lawmakers struggle to make progress.

Oil prices increased nearly 2% on Monday on positive economic data from Europe, Asia, and the US, but investors remained concerned about rising coronavirus cases globally and oversupply as OPEC begins to lift supply cuts. OPEC+ members have been cutting oil output by 9.7 million barrels per day (bpd) since May. This month, cuts will taper to 7.7 million bpd until December.

Gold prices retreated from a record high on Monday after the dollar strengthened and investors booked some profits. Spot gold fell 0.3% to $1,969.74 per ounce, after hitting a record high of $1,984.66.

The Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) for China came in at 52.8 for July, the highest level since February 2011.

The final July manufacturing PMI for Germany rose 1 point on the month to 51, thanks to robust increases in production and new orders.

Economic data slated for release today include 3-year Australian government bond yield target and interest rate decision by the Reserve Bank of Australia as of August 4, June producer price index (PPI) for eurozone and US factory orders for June.



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